Related to the Economics in Practice on P

question 99

Multiple Choice

Related to the Economics in Practice on p.28: How did the introduction of the microwave in 1960 affect the market for frozen food?

• A)It encouraged people to leave the work force by making cooking easier and less time-consuming.
• B)It reduced the opportunity cost of eating frozen food by decreasing the amount of time required to prepare frozen meals.
• C)It increased the financial cost of alternative methods of food preparation,such as conventional ovens.
• D)It made frozen foods more appealing by increasing the variety of meals that could be frozen and reheated.

---

Definitions:

Fair Value

An estimate of the market value of an asset or liability, based on current prices in an orderly transaction between market participants.

Book Value

Book value is the value of an asset according to its balance sheet account balance, taking into account the cost of the asset minus any depreciation, amortization, or impairment costs.

Loss on Disposal

An expense recorded when an asset is sold for less than its carrying amount on the balance sheet.

Cash Proceeds

The actual amount of money received from transactions such as sales, financing, or the sale of assets.